📈 Compound Interest Calculator
The Compound Interest Calculator helps you estimate how your savings or investments grow over time when interest is compounded. It’s a quick and easy way to see how your money can multiply when interest is added not only on the principal but also on previously earned interest.
✨ What is Compound Interest?
Compound Interest means you earn “interest on interest.” Instead of calculating interest only on your original amount (simple interest), compound interest grows faster because each period’s interest is added to your balance, and future interest is based on that new total.
For example: If you invest $1,000 at 5% annually, after 1 year you’ll have $1,050. In year 2, interest is calculated on $1,050 instead of $1,000, giving you $1,102.50. Over time, this snowball effect creates exponential growth.
🧮 Compound Interest Formula
The general formula is:
Where:
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A = Final amount after compounding
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P = Principal (initial investment)
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r = Annual interest rate (in decimal)
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n = Number of compounding periods per year
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t = Time in years
Features of Compound Interest Calculator
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Enter initial investment (principal)
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Add monthly or yearly contributions
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Choose interest rate (%)
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Select compounding frequency (Annually, Quarterly, Monthly, Daily)
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View final balance and total interest earned
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Interactive chart showing growth over time
💡 Why Use This Tool?
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Helps you plan smarter savings and investments
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Shows the true power of compound growth
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Lets you compare different scenarios (rates, timeframes, contributions)
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Useful for retirement planning, stock investments, bank savings, or college funds
📌 Example Calculation
If you invest $5,000 at 6% annual interest, compounded monthly, for 10 years:
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Starting balance: $5,000
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Ending balance: around $9,000+
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Total interest earned: about $4,000
That’s the power of compound interest — the longer you invest, the more your money grows.
👉 Try the Compound Interest Calculator now and see how your savings can grow with time!